Sunday, December 09, 2018

Monday Watch

Today's Headlines
  • Stocks Drop on Heightened Trade Worry; Yen Gains. U.S. stock futures declined with equities in Asia amid a potential escalationof tensions between Washington and Beijing, and after signs China’s economy remains under pressure. The yuan weakened with the Australian dollar, while Treasuries climbed with the yen as haven assets caught a bid. Futures on the S&P 500 Index dropped 0.8 percent and shares fell in Australia, Japan and South Korea, building on a weak Friday session when U.S. equities sank more than 2 percent. Yields on 10-year Treasury slid to 2.83 percent, the lowest in four months. Dampening the mood at the start of this week was news China’s vice foreign minister has summoned the U.S. ambassador Terry Branstad in protest over the arrest of Huawei Technologies Co.’s chief financial officer and weak data on China’s slowing economy. Japan’s Topix index fell 1.5 percent as of 9:02 a.m. in Tokyo. Australia’s S&P/ASX 200 Index lost 1.8 percent. FTSE China A50 futures slid 0.4 percent and Hang Seng Index futures were flat late Friday. Futures on the S&P 500 Index were down 0.8 percent.
Zero Hedge:    
Night Trading
  • Asian indices are -1.75% to -.75% on average.
  • Asia Ex-Japan Inventment Grade CDS Index 97.75 +3.0 basis points.
  • Asia Pacific Sovereign CDS Index 9.75 unch.
  • Bloomberg Emerging Markets Currency Index 67.17 +.02%.
  • FTSE 100 futures -.92%.
  • S&P 500 futures -.75%.
  • NASDAQ 100 futures -.81%.

Earnings of Note
Before the Open:
  • None of note
After the Close:
  • (CASY)/1.64
  • (NX)/.43
  • (SFIX)/.03
Economic Releases
10:00 am EST
  • JOLTS Job Openings for October.
Upcoming Splits
  • (ROL) 3-for-2
Other Potential Market Movers
  • The (IDCC) investor day could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by financial and technology shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon.  The Portfolio is 25% net long heading into the week.

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